Brunei Darussalam Case Study

Improved Essays
Can Brunei Darussalam economy withstand until the year 2035 or even 2020 with the current economic situation? Every country must have or face problems either social, political or economic issues. Not to mention, Brunei Darussalam also faces these issues. One of the issue that can be seen is economic issues where it can be seen to have effects on the country and also the people. Economic issue is the problem of having limited resources or revenue to satisfy the endless needs of the people and country. Although there are several other issues Brunei faced, but economic issues such as dependency on oil and gas, overspending of revenue, and domination of Chinese in Brunei economy, can slow the country’s development. To start off, the most noticeable …show more content…
One-way government overspending can be seen on the high rate of incoming foreigners and unemployment in Brunei. The high rate of unemployment and incoming foreigners have interrelationship. Government spend billions of dollar on education but leave the scholar unemployed after they graduate. With the jobs vacancies in both government and private sector, most of the jobs are given to non-local even though there is still a lot of unemployed educated and skill local. In a report, Brunei has the second highest rate of unemployed people. However, the government still employ foreigner which require a lot of money (salary, home, allowance). Another way most money spend on is importing staple food. For example, most rice and sugar are imported from Thailand, Cambodia, and Vietnam in order to meet Brunei’s demand. Brunei imported 90% of its rice from these countries, and the rest 10% is rice produce locally. Brunei has the land and proper condition to produce its own rice, and if it is produced locally, Brunei can halve the dependency from imported rice, in order to diversify and strengthening Brunei’s economy. Thus, overspending of country’s revenue can be an issue towards Brunei’s …show more content…
In Brunei, high number of private industries is dominated by non-locals, and it’s been like that for a while. Brunei relies too much on China’s investment that makes Brunei too relax in developing its economy. To achieve Brunei’s Vision 2035, Brunei seems to ‘go with the tide’ and gain benefits from these investments. As mentioned by Brunei’s foreign minister, Pehin Orang Kaya Pekerma Dewa Dato Seri Setia Lim Jock Seng, “China has great political will to step up mutual beneficial cooperation with Brunei,” and also said that China emphasizes its support and appreciation for Brunei’s desire for economic diversification as outlined in the country’s Vision 2035. For example, the Hengyi Industries project to develop an oil refinery and aromatics plant at Pulau Muara Besar (PMB). Brunei has grown accustomed to being spoofed, thus letting other people to do most of the development and just living off other people’s work. Additionally, there are a large number of private businesses owned by Chinese and fewer runs by local people. An example is Hua Ho Department Store the biggest retail business in Brunei. Most of the Chinese businessman in Brunei get recognition and given a title for their contribution to the country. Although, Brunei’s economy is boosted by the Chinese can increase GDP, it is more beneficial for the Malay to innovate and feel the pain of entrepreneurship instead of working or hoping for

Related Documents

  • Great Essays

    Apple In China Case Study

    • 8011 Words
    • 33 Pages

    At the same time, the knock offs take a fair amount proportion of the market, and some of the population prefer those knock offs. China is a large population country after all, and those knock offs may have very similar softwares, operating system and outlooks with the major cell phone companies. They do have very appealing characters that fit to the Chinese market, and support many types of format and downloads. The softwares are much more open than the commercial cell phones, and they do not…

    • 8011 Words
    • 33 Pages
    Great Essays
  • Superior Essays

    LVMH In China Case Study

    • 1213 Words
    • 5 Pages

    Case Study #3 – LVMH in China: Cracks Its Empire of Desire? Moët Hennessy Louis Vuitton (LVMH) is a leader in luxury products and the Chinese elite love to purchase the luxury products to flaunt their wealth and prestige. However, over the last few years, the Chinese customers have been traveling to France and other European countries to purchase their LVMH products in China are twice as expensive because the prices are lower in Europe and China has high luxury taxes and the euro is weak. With the fact that the Chinese have been purchasing more of their LVMH products outside of China, LVMH sales in China have leveled off. Counterfeiting continues to be a severe problem with high quality products like those that are offered by LVMH.…

    • 1213 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    The factories and new infrastructures gave work to the poor, paying them very little but more than they were originally living on. As China continues to modernize the people are adjusting as well because most if these people have been impoverished for a long time. The amount of jobs created and rise of GDP has given many Chinese lives they never thought they could have, lives that include having technology, cars, etc. China has become the world’s factory, most toys, clothes, etc. say “Made in China” this is a big deal because China’s name is spread worldwide making them globally important, the start of a super power.…

    • 1282 Words
    • 6 Pages
    Improved Essays
  • Improved Essays

    Even if granted amnesty, most illegal immigrants will remain poor which means the government and upper and middle classes will have to spend more money on welfare programs to support 11 million more people. It is estimated that for every $3 in benefits received, undocumented workers will only make $1 making the net annual cost per unlawful immigrant household $28,000. This is a lot of money to make up for, especially with the trillions of debt already racking up. The issues with immigration is that there is no sure fire solution to the problem. Deporting 11 millions of illegal immigrants could cost upwards of trillions of dollars but leaving them alone also negatively effects the economy.…

    • 1157 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Superiority Of China

    • 1170 Words
    • 5 Pages

    China’s strategy consists of exporting goods at extremely low prices due to a devalued currency. However, China’s strategy of keeping low prices will not hold up over the years for a couple of reasons. China’s renminbi being approved by the I.M.F as a main world currency will make China’s exports less competitive. As overseas central banks make large purchases of the renminbi, it will make the renminbi appreciate (Bradsher). Therefore, China will have a difficult time preventing the currency from appreciating, which in turn will make exports from China less beneficial (Bradsher).…

    • 1170 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Monopolies In China

    • 703 Words
    • 3 Pages

    Because of the influence of Capitalism on the Communist country, China’s economic system allows for the existence of monopolies. China’s economy is more successful than those of other communist countries. Background: In the 20th century, China went through tremendous changes in the way its government was run and its economy was structured. The last dynasty of China, The Qing Dynasty, disapproved of trading with other…

    • 703 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    Startup Case Study

    • 702 Words
    • 3 Pages

    Fostering the right policies Despite the introduction of number of policies, officials in Beijing still have more to do to truly foster start-ups. When asked about the most important policy officials should implement in order to boost start-up culture in China, Ebersweiler told gbtimes, “China needs to adapt its Corporate Law to be closer to the US counterpart. It’s not terrible, but not awesome either.” Furthermore, considering the nature of start-ups with its high failure rates, Chinese government should look into creating more backup nets. The country must encourage more lending for small businesses, as well as foster investment in start-ups – even outside investment. “I still remember a time where nobody would have cut a $25k check to anyone in the country, so I’m happy that entrepreneurs have more opportunities to raise money,” Ebersweiler said and continued, “Let’s hope they are conservative and take the time to learn the hardships of running a…

    • 702 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    The company has a franchise arrangement with foreign partners, which are Malaysia’s Kerry Group and Hong Kong’s Swire Group, to overcome the problem of shortage human resources and reduce risk. Meanwhile, they still have Joint Venture with Chinese partners. The strengths of local partners are strong distribution and knowledge of local beverage markets, while foreign partners have not only an identical view about the goal of long-term profit and market share maximization with Coca-Cola but also strong political connections to the Chinese Government. This company’s internalization strategy could potentially result in revenue-enhancing, cost-reducing and risk-avoiding benefits to…

    • 1178 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Lenovo Case Study

    • 1013 Words
    • 5 Pages

    Q1. Explain the success of Lenovo (and other companies from emerging markets) on global markets? Lenovo first had its success in China, then it ventured into different other emerging markets such as India and Russia. The main factors of its success in China are as follows Aggressive Pricing: Lenovo priced its products above local competitors but low in comparison to foreign competitors. It could do that due to its low costs.…

    • 1013 Words
    • 5 Pages
    Improved Essays
  • Great Essays

    Danone Case Study

    • 1622 Words
    • 7 Pages

    With the reform and opening up in China, more and more foreign companies swarm into Chinese market for its cheap labour prices, rich resources and high market potentials. Some of these multinational companies chose to solely invest in Chinese market, while some took the way of joint venture, while others stepped into the market by franchising. But no mater which path did they take, they all have one goal, that is to win profits and grab the market share in China. Especially in recent 10 years, the market space of western countries has been shrinking, while in the opposite, developing countries like China have been showing the powerful momentum of economic development. The door of Chiese market was gradually opened for multinational companies.…

    • 1622 Words
    • 7 Pages
    Great Essays